Capital-labor substitution and economic efficiency
TL;DR: In this article, the authors proposed a method to improve the quality of the service provided by the service provider by using the information of the user's interaction with the provider and the provider.
Abstract: Обсуждаются следующие темы: чистая теория производства, функциональное распределение дохода, технический прогресс, источники международных конкурентных преимуществ. Анализируются эластичность замещения между трудом и капиталом в обрабатывающей промышленности; производственные функции различного типа.
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TL;DR: This paper disaggregated the world economy into two sub-economies, identified as developed and underdeveloped, by disaggregating the respective natural resource sectors into energy and other resources.
Abstract: Critics of the Forrester-Meadows models of population and economic growth limits have focused their attention on the excessive aggregation of the model, on its exceedingly conservative assumptions regarding technological change and, particularly, on its alleged failure to consider the extent to which the feedback relationships implicit in the price mechanism will operate to prevent catastrophic outcomes, While such criticisms are formally valid, they are insufficient to invalidate the main conclusion that limitless growth is impossible.Our model, while in the Forrester-Meadows tradition, seeks to meet these criticisms by disaggregating the world economy into two subeconomies, identified as “developed” and “underdeveloped” respectively, by disaggregating the respective natural resource sectors into “energy” and “other resources,” and by providing for the consideration of alternative assumptions regarding technology. The form of disaggregation employed requires specific consideration of income gener...
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01 Jan 1992
TL;DR: In this paper, the authors define a profit-sharing enterprise in the Islamic economic system, which is based on economic cooperation and economic cooperation is shown in the sharing of total investments through capital and other visible or invisible assets like allocation of time.
Abstract: The term ‘mudarabah’ stands for the form of profit-sharing enterprise in the Islamic economic system. It has two principal characteristics. First, the enterprise works on the basis of share capital among a large number of shareholders from various sectors of the economy. Secondly, the profit-sharing enterprise is based on economic cooperation wherein participants undertake joint ventures and cofinance economic projects. The essence of economic cooperation is shown in the sharing of total investments through capital and other visible or invisible assets like allocation of time. All such endowments, no matter how large or how small, on the part of individual shareholders entitle them to equal voting and decision making rights in the enterprise. However, the total profits are shared in proportion to their individual shares in investment.
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Posted Content•
TL;DR: In this article, the authors present a theory of how factor income shares are determined in an environment with labor market frictions and heterogeneous firms, and simulate the model and examine its predictions for factor shares in the U.S. during the period 1951-2010.
Abstract: This paper presents a theory of how factor income shares are determined in an environment with labor market frictions and heterogeneous firms. I assume neither a specific aggregate production function nor competitive factor markets. Instead, I first develop microfoundations for an aggregate production function that incorporates a frictional process of matching workers and firms. Wages are determined by Bertrand style competition between firms whose productivity levels are assumed to be Pareto-distributed. In the limiting case where the unemployment rate goes to zero, the aggregate production function is Cobb-Douglas and factor shares are constant. In general, however, the behavior of factor shares is driven by labor market conditions such as unemployment and workers' reservation wage. I simulate the model and examine its predictions for factor shares in the U.S. during the period 1951-2010. The theory can explain much of the variation in factor shares from 1951 to 2003 but the sharp fall in labor's share in around 2004-2005 remains puzzling.
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Cites background from "Capital-labor substitution and econ..."
...Using the expression for σ in Arrow et al. (1961), σ = −f ′(k)(f(k)− kf ′(k)) kf(k)f ′′(k) ....
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...The second alternative is to use the constant-elasticity-of-substitution (CES) aggregate production function introduced by Arrow et al. (1961) and assume that technological change is purely labor-augmenting.3 In the theory presented here, there are two distinct ways in which constant factor shares…...
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25 Jun 2009
TL;DR: In this article, a critique of the neoclassical theory of investment behavior is presented, and the main conclusions are as following: The main conclusions of the critique are as follows:
Abstract: This paper is a critique of the neoclassical theory of investment behavior advanced by Jorgenson and others. The main conclusions are as following:
6 citations
TL;DR: In this paper, the authors analyse the effects of the concluded EU free trade deal on South Africa with special emphasis on the agricultural sector and find that exports of dairy products to the EU will increase by more than 35% while exports of vegetables and fruit and other agricultural products will also increase by 25% and close to 30% respectively.
Abstract: The objective of this paper is to analyse the effects of the concluded EU free trade deal on South Africa with special emphasis on the agricultural sector. The study makes use of the GTAP software and methodology developed at Purdue University, which provides a very convenient and efficient way for interpreting changes in trade flows due to tariff structure adjustments. The paper gives a detailed account of change in trade flows together with the resulting welfare effects. If is found that both South Africa and the EU will experience welfare gains as a result of the agreement. Furthermore it is determined that exports of dairy products to the EU will increase by more than 35% while exports of vegetables and fruit, and other agricultural products will also increase by 25% and close to 30% respectively.
6 citations
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TL;DR: In this article, the authors proposed a method to improve the performance of the system by using the information of the user's interaction with the system and the system itself, including the interaction between the two parties.
Abstract: В статье производится анализ агрегированной производственной функции, вводится аппарат, позволяющий различать движение вдоль такой функции от ее сдвигов. На основании сделанных в статье предположений делаются выводы о характере технического прогресса и технологических изменений. Существенное внимание уделяется вариантам применения концепции агрегированной производственной функции.
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01 Jan 1956TL;DR: In this paper, a very brief treatment of three questions relating to the history of our economic growth since the Civil War is given, namely: (1) How large has been the net increase of aggregate output per capita, and to what extent has this increase been obtained as a result of greater labor or capital input on the one hand and of a rise in productivity on the other? (2) Is there evidence of retardation, or conceivably acceleration, in the growth of per capita output? (3) Have there been fluctuations in the rate of growth of output, apart
Abstract: Introduction This paper is a very brief treatment of three questions relating to the history of our economic growth since the Civil War: (1) How large has been the net increase of aggregate output per capita, and to what extent has this increase been obtained as a result of greater labor or capital input on the one hand and of a rise in productivity on the other? (2) Is there evidence of retardation, or conceivably acceleration, in the growth of per capita output? (3) Have there been fluctuations in the rate of growth of output, apart from the shortterm fluctuations of business cycles, and, if so, what is the significance of these swings? The answers to these three questions, to the extent that they can be given, represent, of course, only a tiny fraction of the historical experience relevant to the problems of growth. Even so, anyone acquainted with their complexity will realize that no one of them, much less all three, can be treated satisfactorily in a short space. I shall have to pronounce upon them somewhat arbitrarily. My ability to deal with them at all is a reflection of one of the more important, though one of the less obvious, of the many aspects of our growing wealth, namely, the accumulation of historical statistics in this country during the last generation. For the most part, the figures which I present or which underlie my qualitative statements are taken directly from tables of estimates of national product, labor force, productivity, and the like compiled by others.
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903 citations